Mutual funds' overseas equity investments rise 37.5% to ₹93,602 crore in FY26: RBI data

The United States accounted for the largest share of mutual funds’ overseas equity holdings. US equity securities stood at ₹59,403 crore at end-March 2026, accounting for 63.5 per cent of total overseas equity holdings, according to the RBI. This was up from ₹43,531 crore a year earlier, an increase of 36.5 per cent.

Luxembourg was the second-largest destination, with ₹18,948 crore, or 20.2 per cent of overseas equity holdings, followed by Ireland at ₹10,003 crore, or 10.7 per cent. Holdings in Hong Kong stood at ₹1,468 crore, while those in Canada rose to ₹1,110 crore from ₹215 crore a year earlier.

“Consequently, the net foreign liabilities of MFs declined to US$ 21.3 billion as at end-March 2026 from US$ 22.3 billion a year ago,” the RBI said.

Overall, foreign liabilities of mutual funds increased 3.3 per cent year-on-year to $31.5 billion at end-March 2026, primarily due to a rise in the market value of units issued to non-residents, the RBI said.

The market value of mutual fund units held by non-residents rose to ₹2,97,530 crore at end-March 2026 from ₹2,60,548 crore a year earlier. Foreign liabilities in units issued by mutual funds at face value increased 16.4 per cent to ₹73,471 crore during the year.

The United Arab Emirates accounted for the largest share of foreign liabilities in mutual fund units at face value at 21 per cent, followed by the US at 11.2 per cent, the UK at 11 per cent and Singapore at 6.9 per cent.

The RBI said the decline in net foreign liabilities “reflected the increase in overseas assets relative to foreign liabilities.”